Subsequent Events

9 Months Ended

Sep. 30, 2012

Subsequent Events

Subsequent Events

9.Subsequent Events

In October 2012, Regulus Therapeutics, Inc. completed an IPO of approximately 12.7 million shares of its common stock at $4.00 per share.  As part of the offering, we purchased $3.0 million of Regulus’ common stock at the offering price.  Upon the close of the offering, our investment in Regulus’ preferred shares converted into common stock and we received one share of Regulus’ Class A common stock for every two shares of Preferred Series A stock that we held at the date of the offering. We now own approximately 7 million shares of Regulus’ common stock. Subsequent to Regulus’ IPO, we own less than 20 percent of Regulus’ common stock and we no longer have significant influence over the operating and financial policies of Regulus.  As such, beginning in the fourth quarter we will no longer use the equity method of accounting for our equity investment in Regulus and instead we will account for it at fair value.  In the fourth quarter of 2012, we will record a significant gain to reflect the change in our ownership percentage.